Our View: Raising the minimum wage

With the enactment of a law incrementally raising the Massachusetts minimum wage to $11 an hour by 2017, nearly a quarter of Greater Fall River's workers, and 20 percent of workers statewide stand to receive a hike in pay. In fact, those who earn mandatory time-and-a-half by working retail on Sundays will see a wage of $16.50 an hour.

With the enactment of a law incrementally raising the Massachusetts minimum wage to $11 an hour by 2017, nearly a quarter of Greater Fall River’s workers, and 20 percent of workers statewide stand to receive a hike in pay. In fact, those who earn mandatory time-and-a-half by working retail on Sundays will see a wage of $16.50 an hour.

While supporters of the minimum wage hike see the law as a means of helping struggling low-wage workers make ends meet and pumping more money into the economy, opponents are concerned that the minimum wage hike could have several unintended consequences. Among those potential consequences: hurting struggling small businesses, forcing layoffs or less hiring and raising prices on goods and services.

There’s also concern that it could diminish job opportunities for teenagers and those seeking entry-level jobs since the new minimum wage will apply to everyone. Furthermore, if the lowest paid workers have higher wages, workers at higher scales would reasonably expect to be paid more. Will the still slumping economy be able to sustain higher wage levels? Will businesses decide against moving into Massachusetts, or will existing businesses move out of the state or close down all together?

While such issues are often considered in the abstract, the minimum wage boost may make a real difference in the lives of real people. In Greater Fall River alone, there are 9,600 workers earning less than $11 per hour, and 2,600 earning slightly above the new minimum wage, who are also likely to see a bump in pay.

At a federal level, President Barack Obama has pushed for a minimum wage hike to $10.10 an hour, but even that more modest proposal faces some stiff opposition. In assessing the effects of an increased minimum wage, it’s important to consider that, in some ways, taxpayers end up subsidzing low wages. Federal programs, such as food stamps, often end up helping low-wage workers make ends meet. With higher wages, the “working poor” may be able to wean themselves off reliance of such government subsidies. They may, in fact, be forced to become more self-reliant if they no longer meet income requirements for government assistance.

During the debate over raising the wage, legislators heard the testimony of both sides and have presumably weighed the potential costs and benefits of raising the wage. Costs of living are increasing and Massachusetts is one of the more expensive places to live in the nation, so it makes sense that the state’s minimum wage would reflect those realities.

Under the new law, the minimum wage will be implemented gradually, increasing from $8 to $9 on Jan. 1, 2015, to $10 on Jan. 1, 2016 and up to $11 an hour on Jan. 1, 2017. That gradual approach should give businesses time to adjust to the new costs of doing business and give consumers and lawmakers time to assess any of the unintended consequences that have been predicted. Hopefully, the economy continues to improve over that time to make the wage hike more feasible for businesses.